scholarly journals The Dynamics of Foreign Direct Investment and Privatization: An Empirical Analysis

2009 ◽  
Vol 13 (2) ◽  
pp. 81-92
Author(s):  
Narjess Boubakri ◽  
Jean-Claude Cosset ◽  
Nassima Debab ◽  
Pascale Valéry
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Capital Inflows ◽  
Foreign Investors ◽  
Managerial Skills ◽  
Private Sector Participation ◽  
Privatized Firms ◽  
Good Environment

Abstract This article examines the link between foreign direct investment (FDI) and privatization of state-owned enterprises. We hypothesize that privatization has an effect on FDI as the process of fostering private sector participation is often accompanied by liberalization measures, and by allocating the shares of newly privatized firms to foreign investors. Similarly, we expect FDI to foster privatization efforts as capital inflows, technology and managerial skills that accompany FDI make the environment more prone to competition, and provide governments with a good environment to privatize inefficient firms. Our results provide support for our conjectures.

scholarly journals Foreign Capital Inflows and Growth of Employment In India: An Empirical Evidence from Public and Private Sector

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Public And Private ◽  
Indian Economy ◽  
Foreign Capital Inflows ◽  
Public And Private Sector

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.

scholarly journals A STUDY OF THE CONTRIBUTION OF MAKE IN INDIA IN INDIAN DEFENCE PRODUCTION SECTOR

2019 ◽  
pp. 25-28
Author(s):  
Ameena Sabooni
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Playing Field ◽  
Self Reliance ◽  
Production Policy ◽  
Critical Technology ◽  
Private Sector Participation ◽  
The Government ◽  
Original Equipment Manufacturers

Prime Minister Modi’s new campaign for “Make in India” is to increase share of manufacturing from the current level of 15 per cent of Gross Domestic Product (GDP) to 25 per cent and create additional employment opportunity of 1 crore per year. The government is putting thrust on export-led growth and should give primacy to “Make for India”. Defence manufacturing came out of the stranglehold of Public Sector Undertakings-Ordnance Factories monopoly with major liberalisation in 2001 with 100 per cent private sector participation and the recently announced 49 per cent in Foreign Direct Investment. Policy footprints such as the Defence Procurement Policy 2013 have created a level playing field for the private sector. The Defence Production Policy 2011 aims at higher self reliance in critical technology and the Offsets Policy 2012 which seeks to leverage our big arms’ acquisition to bring in state-of-art technology, and long term partnership with Original Equipment Manufacturers (OEMs). The Self Reliance Index of our defence acquisition, however, remains at a wobbly 30 per cent despite spasmodic policy posturing to improve indigenisation. KEY WORDS: GDP, Export led growth,PSU, Private Sector Participation, Foreign Direct Investment etc

Role of foreign direct investment – As a strategic move towards growth, economic integration and development

2021 ◽  
pp. 002072092199659
Author(s):  
Rima H BinSaeed
Keyword(s):  
Saudi Arabia ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Vital Role ◽  
Foreign Investors ◽  
Technological Infrastructure ◽  
Industrial Sectors ◽  
Vision 2030 ◽  
International Investors ◽  
The Government

Kingdom of Saudi Arabia with its developed economy and advanced technological infrastructure has shown a major progress in business opportunities for overseas investors. Saudi Arabia’s education sector is one of the most attractive investment opportunities for the foreign investors Earlier in 2019, 9 new foreign education enterprises were granted investor licenses, amounting to a total of $141mn of investment deals. The Saudi government introduced Saudi Vision 2030, an aspiring development plan that foresees vital prospects for foreign investors in the regions of education, housing, health and energy, amongst others. In 2016, Saudi Arabia permitted the procurement of 100% of assets by foreign investors in retail and wholesale trade. A privatisation program has also been introduced. The government also attempts to attract FDI in the regions of renewable energy and entertainment. A foreign direct investment (FDI) plays a vital role in local and international economy. Several opportunities and ventures are encouraged by Saudi Arabia to improve the standard of business and economical environments. To accomplish the finances for the projects SAGIA, the lawful authority is there to smooth the progress of investments, which encourages Saudi FDI prospective to grow simultaneously. FDI has a greater scope for diverse businesses and investing in to underdeveloped industrial sectors. FDI plays an important role in boosting the economy of Saudi Arabia by managing international investors who shares the huge portion of 34% in General GDP (Gross domestic product) of Saudi Arabia. This paper aims to review the literature to shed light on the steps taken by the government to increase FDI in the country and what are the current trends that are helping to fulfil VISION 2030.

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

scholarly journals DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE VISEGRAD GROUP COUNTRIES AFTER THE EU ENLARGEMENT

2018 ◽  
Vol 24 (5) ◽  
pp. 1955-1978 ◽  
Author(s):  
Weihua Su ◽  
Dongcai Zhang ◽  
Chonghui Zhang ◽  
Josef Abrhám ◽  
Mihaela Simionescu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Labour Force ◽  
Eu Enlargement ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Visegrad Group

Considering the role of foreign direct investment (FDI) inflows in the sustainable development of a country, the main aim of this paper is to identify some macroeconomic factors that positively or negatively influence FDI in Visegrad group countries after the European Union (EU) enlargement in 2004. We employed two types of approaches in our analysis: i) time series and ii) panel data approach. According to the generalized ridge regressions estimated in Bayesian framework, the perceived corruption was a factor that influenced FDI in all the countries. In Poland, Czech Republic and Slovakia corruption came through as a serious obstacle for FDIs since 2005, but this was not the case for Hungary. Even if Hungary is perceived as a country with high influence, foreign investors seem no to care about this fact and are more interested in the quality of human resources and the possibility to increase exports. Our panel approach based on a panel ARDL model identified a significant relationship between FDI, corruption index and labour force with advanced education however this causality was only detected in the long run. According to the Granger causality in panel, the attraction of FDI inflows succeeded in generating changes in total tax rate, but the issues related to corruption were not reduced at an acceptable level for foreign investors in Poland, Slovakia, and the Czech Republic.

scholarly journals THE CONTRIBUTION OF FDI AND FINANCIAL DEVELOPMENT ON ECONOMIC GROWTH IN SRI LANKA

2021 ◽  
Vol 8 (1) ◽  
pp. 25-34
Author(s):  
Sarojini Maheswaranathan ◽  
K.M.N. Jeewanthi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Private Sector ◽  
Financial Development ◽  
Direct Investment ◽  
Capital Investment ◽  
Bank Credit ◽  
Percent Increase ◽  
Foreign Direct Investment Inflows

The present study investigates the relationship between financial development, Foreign direct investment and economic growth in Sri Lanka for the period 1980 to 2019 by applying the Augmented Dickey-Fuller Unit root test along with the ARDL approach in process of achieving the desired objective. The outcome of this study shows that except GDP and FDI all other variables such as Capital investment as a percent of GDP (CI), Bank credit to the private sector as a percent of GDP (BCP), net foreign direct investment inflows in % of GDP (FDI) are stationary at first difference. The findings reveal that net foreign direct investment inflows are a positive relationship with economic growth in the long run. It means a one percent increase in net foreign direct investment inflows increases the GDP by   0.826439 percent. At the same time, a one percent increase in bank credit to the private sector decreases the GDP by 0.864320 percent. Moreover, in the short run FDI, CI and BCP have a positive and significant impact on GDP.  Diagnostic tests such as normality test, heteroskedasticity and serial autocorrelation are employed to validate parameter estimation outcomes. Further, the stability of the variables confirms by the CUSUM test.  The country should propose Strategies to boost the growth of efficient domestic financial institutions and encourage policy to attract greater FDI inflows that meet the needs of the knowledge-based economy.

scholarly journals Vertical spillovers from multinational enterprises: Does technological gap matter?

2016 ◽  
Vol 63 (3) ◽  
pp. 313-323 ◽  
Author(s):  
Rosanna Pittiglio ◽  
Filippo Reganati ◽  
Edgardo Sica
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Manufacturing Sector ◽  
Spillover Effect ◽  
Empirical Literature ◽  
Foreign Investors ◽  
Technological Gap ◽  
Local Companies ◽  
The Relationship

Foreign direct investment (FDI) from Multinational enterprises (MNEs) can augment the productivity of domestic firms insofar as knowledge ?spills over? from foreign investors to local producers. The capacity of local companies to exploit knowledge from MNEs can be affected by the technology gap between foreign and local enterprises at both horizontal (in the same industry) and vertical (in different industries) level. Whereas most of the empirical literature has focused exclusively on the analysis of horizontal and backward spillovers (i.e. between MNEs and local suppliers), the present paper also examines the relationship between FDI-related spillovers and technological gap in the Italian manufacturing sector at forward level (i.e. between MNEs and local buyers). Results suggest that at both intra-industry and forward level, the technological gap is of considerable importance for the spillover effect, particularly in the case of low-medium gap.

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